Economic Calendar

Twitter

Subscribe

New York Forex Report: Sterling Under Pressure As Net Consumer Credit Dips

The US Dollar begins the new week on the front-foot as market expectations for clear policy divergence drivers continue to shape flows. All attention this week will be initially placed on the ECB’s December meeting, where investors look for the central bank to announce further easing measures; attention will then turn to the US November NFP’s where USD bulls will be hoping for another boost ahead of the keenly anticipated December FOMC meeting where CME group price a 78% probability of a rate hike.

Fundamental: EUR was lower over the European morning as expectations for further ECB easing to be announced this week continue to weigh on rate. Headline data over the US session will be German CPI at 1300GMT expected to improve to 0.4% from 0.3% previous.

Technical: While 1.0620 caps intraday upside corrections, bears target a test of 1.05 next ahead of an assault on year to date lows. Only a close above 1.07 eases immediate downside pressure.

Fundamental: The strong US Dollar saw USDJPY strengthen over the European morning with JPY weaker as equity markets continue higher this week. Traders look ahead to Japanese 3Q capital spending data later today.

Technical: While 122.50/30 supports downside reactions, market structure remains bullish to test 2015 highs next. A failure at 122 opens a test of 121.40 support next ahead of pivotal 120.

Fundamental: AUD closed at 0.7192 and touched a one-month peak of 0.7283 last Wednesday, partly due to expectations the Reserve Bank of Australia (RBA) is in no rush to cut interest rates in the near future. The central bank’s next policy meeting is tomorrow and investors expect the RBA to keep interest rates at a record low of 2.0 percent.

Technical: While .7170/50 remains the bid zone expect grind higher to test .7350 area next, only a close below .7150 concerns near term bullish bias.

Fundamental: USDCAD softened from initial session highs over early European trading as Oil price spiked ahead of this week’s OPEC meeting where the organization will discuss polices to tackle the huge supply glut which has weighed so heavily on Oil prices.

Technical: Bulls have the ball while 1.3280/60 supports intraday downside. A close below 1.3220 would ease the near term bullish bias and suggest a broader correction is underway.